kotak mahindra bank

1. 1
Presented By: Akshay A. Virkar
Equity Research on
Kotak Mahindra Bank

2. Content
Company Overview
Fundamental Analysis
Technical Analysis
Future Outlook
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3. Company overview & Shareholding
Pattern
• Kotak Mahindra Bank is an Indian financial service firm established
in 1985.
• It was previously known as Kotak Mahindra Finance Limited, a non-
banking financial company.
• In February 2003, Kotak Mahindra Finance Ltd, the group's flagship
company was given the license to carry on banking business by the
Reserve Bank of India (RBI).
• Kotak Mahindra Finance Ltd. is the first company in the Indian
banking history to convert to a bank.
• Mr. Uday Kotak is Executive Vice Chairman & Managing Director of
Kotak Mahindra Bank Ltd.
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4. Shareholding Pattern
Promotors
Institutions
Non-Institutions
Others
45.11%
34%
20.74%
0.15%
Total = 736,872,738 = 100%
4Source: moneycontrol.com

5. Fundamental Analysis
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6. Profit & Loss Statement (‘000)
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7. Particulars 2012 2011 2010 2009 2008 Growth(%)
I. Income
Interest Earned 84,704,198 59,731,123 46,011,601 43,665,634 36,483,880 132.1
Other Income 45,433,975 50,898,513 54,521,404 28,517,034 40,300,795 12.7
Total 130,138,173 110,629,636 100,533,005 72,182,668 76,784,675 69.4
II. Expenditure
Interest Expended 45,419,568 26,682,405 17,728,575 19,923,947 18,164,770 150.0
Operating Expenses 57,166,245 59,997,243 58,668,505 39,485,110 40,910,513 39.7
Provisions and Contingencies 9,047,071 8,257,638 10,862,326 6,246,890 8,122,128 11.3
Total 111,632,884 94,937,286 87,259,406 65,655,947 67,197,411 66.1
III. PROFIT
Net Profit for the year 18,505,289 15,692,350 13,273,599 6,526,721 9,587,264 93
Less: Share of Minority Interest 528,445 263,526 179,984 37,283 (186,875) (38.2)
Add: Share in profit / (loss) of
Associates
345,509 238,623 (23,610) 34,425 138,127 150.1
Consolidated Profit for the year
attributable to the Group
18,322,353 15,667,447 13,070,005 6,523,863 9,912,266 84.8
Add : Surplus brought forward
from previous year
49,626,168 37,202,874 26,912,987 21,083,497 14,958,762 231.7
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Amt. In Rs.

8. Total 67,948,521 52,870,321 39,982,992 27,607,360 24,871,028 173.2
IV. APPROPRIATIONS
Transfer to Statutory
Reserve
2,712,700 2,045,500 1,402,800 690,300 735,000 269.0
Transfer to Other Reserve 10,50,352 9,73,725 8,02,224 341,498 286,443 266.6
Transfer to General
Reserve
542,600 426,725 353,200 138,050 562,691 (3.5)
Transfer to Capital Reserve 200 6,900 69,600 29,700 14,800 (98.6)
Transfer to Debenture
Redemption Reserve
- 381,376 726,467 1,314,020 2,858,482 (86.6)
Transfer from Debenture
Redemption Reserve
- (783,625) (882,804) (2,514,373) (1,004,848) (22)
Transfer (from) / to
Investment Reserve
Account
145,200 (268,300) 11,900 417,014 — (65.1)
Proposed Dividend 444,929 368,832 296,613 259,553 258,699 71.9
Corporate Dividend Tax 90,801 93,020 118 18,611 76,264 19
Balance carried over to
Balance Sheet
62,961,739 49,626,168 37,202,874 26,912,987 21,083,497 198.6
Total 67,948,521 52,870,321 39,982,992 27,607,360 24,871,028 173.2
Source: Annual Report of the company 8

9. Ratios Analysis
• Liquidity Ratio
1) Current Ratio = Current Assets = 0.08
Current Liabilities
2) Quick Ratio = Quick Assets = 16.85
Quick Liabilities
• Solvency Ratio
1) Debt to Equity Ratio = Debt = 78.83
Equity
2) Debt Asset Ratio = Debt = 31.61
Asset
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10. 3) Interest Coverage Ratio = EBIT + Depreciation = 6.12
Interest
4) Debt Service Coverage Ratio =
EBDIT = 6.50
Interest + Debt Repayment
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11. • Profitability Ratio
1) Gross Profit Margin Ratio =
Gross Profit x 100 = 14.23
Sales
2) Operating Profit Margin Ratio =
Operating Profit Margin x 100 = 15.65
Sales
3) Return on Capital Employed Ratio =
EBDIT = 17.33
Fixed Assets + Working Capital + Capital Employed
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12. • Efficiency Ratio
1) Receivables Turnover Ratio =
Sales = 13.39
Receivables
2) Inventory Turnover Ratio =
Inventories = Nil
Cost of Goods Sold
3) Working Capital Turnover Ratio =
Sales = 4.48
Working Capital
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13. • Valuation Ratio
1) Earning Per Share Ratio =
Profit After Tax = 16.39
Number of Shares
2) Price Earning Ratio =
Market Price = 39.86
EPS
3) Dividend Payout Ratio =
Dividend = 2.92
Profit After Tax
4) Book Value Per Share =
Net Worth = 107.15
Number of Shares
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14. Economic Analysis
GDP growth rate 4.5% (3Q
FY’12)
Inflation Rate is 6.62% as on
January 2013
Index of Industrial Production
of November 2012 was 8.2%
Balance of Trade is -1,086.12
INR Billion as on January 2013
Stock Market Volume is
18,918.52 as on 1st March,
2013
Source: Tradeeconomics.com
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15. Industry Analysis
• Growth of Private Banking Sector is 23% as on 3Q FY’13
• SWOT analysis of Kotak Mahindra Bank
Strength 1. Innovative financial products of diverse
categories
2. Kotak Mahindra Finance Ltd. is the first
company in the Indian banking history to convert
to a bank
3. Comprehensive Cash Management System
4. Customer account base of over 2.7 million
Weakness 1. Lesser penetration as being late entrants
2. Low publicity and marketing as compared to
other premium banks in the urban areas
Opportunities 1. Increase in Industry banking
2. Explore opportunities abroad by International
banking
Threats 1. Economic slowdown
2. Highly competitive environment
3. Stringent Banking Norms
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16. Comparison With Peers
Name Last Price Market Cap.
(Rs. cr.)
Net Interest
Income
Net Profit Total Assets
Kotak Mahindra 654.85 48,788.96 6,180.24 1,085.05 65,666.46
Axis Bank 1,363.70 63,683.91 21,994.65 4,242.21 285,627.79
IndusInd Bank
400.95 20,953.14 5,359.20 802.61 57,596.07
Yes Bank 473.00 16,936.84 6,307.35 976.99 73,662.12
Source: Moneycontrol.com 16

17. Technical Analysis
Source: indiansplash.com 17

18. Future Outlook
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All the financial results of this company
are stable which gives the projection of
future growth.

19. Sources
• Annual Report of the company
• Tradeeconomics.com
• Moneycontrol.com
• indiansplash.com
• www.kotak mahindra.com
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